Bill Bonner reporting from Argentina today:
This Is Argentinahttp://www.dailyreckoning.com.au/this-is-argentina/2012/04/19/Quote:
That’s what’s nice about Argentina. You know where you stand. You know the politicians are crooked and the bureaucrats are incompetent, if not completely mad. You know you have to find a way around them...a way to dodge their rules...a way to protect yourself. You know the government’s figures are lies and its promises are empty. You know what to do with its currency too — try to get rid of it at the earliest opportunity.
That’s why the federales in Argentina have new dogs on the job at the international airports. They’re not trying to stop people from bringing in weapons or contraband. They’re trying to stop people from taking out dollars!
Yes, dear reader, the papers tell us that the Argentines have trained dogs to sniff out dollars — striking fear in the hearts of those who would try to convert their pesos to dollars and take them where they might be safe.
Meanwhile, back in Argentina, the Kirchner government has announced the forced nationalization of the nation’s biggest oil company — YPF. Naturally. The government said it was unhappy with the way the owners were (not) investing in new development. So, they’re taking the company into their own hands — as if the penniless pampa feds will invest more!
What better way to convince foreign investors NOT to invest their money in Argentina; take away their assets. Heck, it worked for Cuba and Venezuela.
Seems transparently nutty. But that’s what’s so good about it. You know what is going on in Argentina. You know for a dead certainty that the government is corrupt and incompetent. And you know you have to watch out!
*** Fortunately, while the Argentines close doors publicly, they leave doors open privately. That is, it is a society like Sicily, where there are laws...and there are ways around them.
We were worried about the effects of another stupid law passed recently by the Argentine government. It prevents foreigners from owning large parcels of farmland. Since your editor owns two large parcels...and since even a blind, deaf and dumb man could not mistake him for an authentic Argentine...he would seem to be the very person the law is meant to restrain. So, we put the question to our lawyer.
“Yes,” he said. “That’s what the law says. But this is Argentina.”